>> mike murphy, slim shady, eminem? >> louisiana pacific, lpx, long. yes, young lady. >> am jen seems to be breaking up. >> you like it? >> oh, sure. >> tune into "fast money" 5 p.m. eastern time because "power lunch" begins right now. [ whistle ] hal halftime's over. the second half of your trading day begins now. indeed it does, welcome to "power lunch." stumped and spent, new data out this hour on just how high college dat has balance land, all that as new numbers emerge detailing how low the s.a.t. scores have fallen. neither paints a very pretty picture of the american education system. the bear growls. former fdic chairman shelia bair is in the house live. wait until you hear what she says about treasury secretary tim geithner in her new book. and full disclosure, i am a green bay packers fan. the nfl says the results of last night's controversial monday night game is final.

seattle beats green bay, yes, that's what i said. the bigger question remains though account nfl keep taking hits like the ones given to them by bad and misplaced calls by replacement refs? we will talk about that in a minute. first to my partner simon at the nyse. >> speaking for replacement anchors in for tyler, the "washington post," sue is reporting that the reading section, the scores for the reading section of the s.a.t. have now hit 40-year lows. the college board says that the clear majority, 57% of those undergoing the tests, did not even score enough to predict that they would succeed in college. as the networks of nbc focus on education here in the united states, we are also learning this hour that americans owe more on their student loans than they do on their credit cards. and the default rate on those student loans is more than four times the default rate on mortgages. so the question now is it another bubble that is about to burst?

senior correspondent scott cone is reporting from washington today on some very startling statistics, scotty? >> reporter: some new statistics, simon, just in. these new figures come from fyke cok -- fico, they analyzed a large sample of credit reports, millions of them nationwide. and here is what they found. since 2005, the percentage of u.s. consumers with multiple open student loans on their credit report has nearly doubled, now almost 12% of us are making payments on at least two student loans. the average amount of that debt, up more than 50% to more than $26,000 on average, a much higher pace of growth than the growth of credit like credit cards and mortgages, other types of debt. and the percentage of consumers with six figures in college debt has more than tripled since 2005. 1.4 million people now with more than $100,000 in student loans. this, of course, is scary stuff for college students who face

repaying their loans in a tough job market just when they are trying to establish credit. >> i am definitely very afraid that it's going to affect my credit score later on. i'm currently trying to pay it off but that's hard to do when you have other bills to pay. >> the massive student loans i have could affect my credit rating when purchasing a house or looking for a job in the future. >> reporter: there is a glimmer of good news at fyke coker the national default rate on student loans is huge, the credit scores of people with student loans held steady. >> what fico is concerned about and what we pay attention to is how will graduates handle that debt? and we will watch that to fee it becomes a predict, of future behavior. >> student loans are already an important factor in credit rating, often it is the only

debt a student has. the most important thing according to the experts advantage score is not the amount of debt but paying it on time. >> if they are paying on time, boy, they can get a credit score very fast. so, that's the positive side. and of course, the negative side is if they are not paying, you know, they will get a score that won't -- won't be so good. >> the way it works is that student loans are considered along with other installment debts, separate from credit card debt and so far, as you heard, they are not seeing a big increase in people having trouble making payments on their other loans because of their student loans, but all of the experts right now are watching it very closely. sue? >> it is indeed they should. scott, thank you very much. the bond auction results are in and rick san telly is tracking the action for us at the cme. i just got a quick glance at the bid to cover it, looked pretty good. >> yeah, doesn't look too bad. 35 billion two-year note, same as the package has been since the fall of 2010.

the ultimate yield was .273. where was the one issue market trading? right up toward the end of the dutch auction, .275 bid to bid offer .27. so.273 slides right in the middle. that's pretty good the average bid to cover the last ten auctions, 3.78 this is where it gets light. 3.60 on this auction, which is a seven-month low. the indirects were a little light at 27.2 versus 32%. wither going to give this one a b-minute news. priced right, considering the wi, a little light in other metrics but not a bad auction as we get into the longer maturi maturiti maturities, probably more excitement cull minute paying in the with thursday's $27 billion seven-year note. ba you can to, simon. a huge co-throw versecy in professional football has become a major money story. brian shactman has the details on that. >> american football, right? if you haven't heard about this story, you have been pretty focused on work or meditating in the mountains 'cause this is the

story of the day in the sports world a quick recap here. the nfl has locked out its rev police a labor dispute. replacement refs have been bad. monday night football, it all fell apart. last play of the game, receiver and defender both go for the ball. looks like the defensive guy has possession but it was ruled a touchdown. rest of the world knows it was the wrong call, seattle wins, green bay loses, the nfl just released a statement standing by the call that golden tate should be credited with a touchdown but admitted a penalty should have been call and negated it, whatever that is worth this is a quote, "this should have been a penalty for offensive pass interference which would have ended guy. it was not called and is not reviewable in instant replay." that result rocked the betting world. most of the reports say the play caused a $150 million to $300 betting swing but several gambling sources tell the cnbc that the number is most likely over 8 billion. jay kornegay who runs the sports book at the las vegas hotel and

casino says 12 to 15 million was bet on the game in vegas, usually is 1 to 2% of the global take. you include internet exoverseas, et cetera. that's talking about 750 million. now, consider that there's a loser for every winner and we are talking about, sue, 1.5, folksily, billion dollar swing when it comes to gambling. it is big numbers. >> huge. full disclosure, as i said, i'm green bay packers fan so this is not going over well me. but despite that, we are going to talk more about this with brian and bring in jack brewer. he played for five years in the nfl, including three years as a team captain, postnfl career clufded stops at harvard business school, want, merrill lynch, private bank. now the ceo of the brewer group, an investment global advisory fish. jack, good to see you again. good to see you at cnbc. >> great to sigh. >> people are talking about this is the tipping point that the nfl now has to do something to get the regular refs back in. can they withstand a hit like what happened last night?

>> no they can't. i think this is a little bit different. you know, this situation, you know, really brought everything to life. you know, the owners and the players battled throughout a lockout but now the fans really want integrity of the game back. you know it is about the fan t is not about the coaches. not about the players. not about the owners it is about the fans. tough give them a quality product on the field. >> ironically, 20 million people watched on nbc sunday night, no sponsors are clamoring, unless people start vacating the stands or a rally, players do anything about it or players union? >> if the legitimacy of the results affects the ranking, which affects eventually the super bowl, which affects the playoffs, i would think the fans might not -- if you can't believe the statistics why do you go to the game? that would be my opinion? >> exactly. football is the purest sport in america. that's the reason why it's beloved by everyone t is because you watch it, you watch people on the field, they are gladiators, guys going against each other. do you not see any type of i will legit mass?

i football normally. it is the first time that's ever been questioned. >> so, how do you think it ends? i mean, is this the tipping point? does the nfl now have to make a deal with a professional referees and get over with or, i mean, that statement was -- didn't seem like they were giving in very much. >> no sort of like an end-around. they said we are not going to comment on the play that's not reviewable, it stands but should have been called over here, down the even see the play early enough, there was a pushoff and had a call. >> doesn't sound like softening to me? >> again, you can comment on this, too the argument with the referees is about a pension plan. they want them to go into 4501 ks instead of a pension plan. the nfl has the money to set the dispute with the referees, they just don't want to unless they are forced to. >> about wing and losing. the owners in the national football league don't like to lose, no matter what the battle s >> neither do the fans. >> right now, they are. i'm an ex-vikings, i can't be on the packers side, but that game last night -- >> we will forgive you for that. >> it was pretty bad. >> how do you think this affect

the money flow of the game, because it is having -- it is going to have a financial impact, the question how much, do you think? >> it depends on how long this thing lasts. once the replacement officials are out of there and the regular guys come back to work, i think things will get back to normalcy. but right now, you know, you just said it, it could be potentially $1.5 billion, you know, lost through gambling. i mean, gambling is a big part of the national football league, whether the owners want to talk about it or not. so you don't ever want that credibility to be lost. >> you know exit's funny, i think you probably would have batted the ball down or made sure -- a d-back. >> i know he was. >> i can catch. >> thank you, guys, good sigh again, brian shactman and jack brewer, former nfl plarnd ceo of the brewer group. simon to you today is the day cnbc releases its all-america economic survey, a big survey focusing on the bit that deals with housing. senior economics reporter steve liesman has that store us. hi, steve. >> thanks, simon.

the poll showing curious split people saying they are way worse off than four years ago and really siding with obama saying he is better off on the economy for the next four years. let's take a look at the shape of the economy and the one bright spot, which simon mentioned, which is house. first of all you can the majority say the economy is poor. we are back up to 53%. in fact, it deteriorated from our last survey, only 36% of the public says the economy is fair and take a look at the low percentage, 10%, who say it's excellent. we started this survey back in '07, just before the recession started. it was around 25 or 30% saying the economy was good or excellent. this may be the new normal, just one out of ten saying the economy is good or excellent. now, let's take a look at what they say, in the next chart here about economic optimism. you can see here that it's 35/25 it beats optimism -- it does beat pessimism for the outlook for the future, 35% of the public saying it's going to get better. and we do have a change that

we've tracked here. let's get rid of these other items here, take a look at the good -- better versus worse. you can see here back in 2011, it was about even. and now, it looks like we have settled about a 10-point split of optimism in the economy. and finally, let's get this issue of home price gains which have been out there. you can see here that during most of the downturn, people were negative on their outlook for home values and just in the last two surveys, the last two quarters, we have seen positive average value outlook for the -- for home prices in the next 12 months. one more thing i want to show you, which is something we have tracked for a very long time, expected wage gains versus inflation. these are the wage gains here, very modest wage gains, 2.3%. they are up off their worst levels back in 2011, but still, just 2.3%. how much inflation are people expecting? take a look at this. 4.4%. this difference here between 4.4 and 2.3 suggests that people believe that their standard of

living is going to be declining. why? because prices are rising faster than their wages are rising. i will be back at 2 p.m. with more on whether americans think obama or romney have the better plans for the economy and check out the full survey results, make sure you go to cnbc.com to get all the information on this survey. simon? >> interesting, steve, thank you very much. let's get a market flash with seema mody. >> finally look at ashland, a specialty chemical firm moving lower in today's trade after the posting a 9.7% sequential drop in august sales for its specialty ingredient he is segment, the biggest contributory overall sales. european seasonality cited as one of the reasons for the drop. look at shares down 6%. back to you, simon. >> thank you very much. the traffic is especially bad in no, this week because of the united nations general assembly but bad enough to cause this? we will show you what happened next on "power lunch." plus, she's commonly referred to around cnbc as chair bair. now, she rk, shelia bair is sof

on her chair at the fdic. quotes like this are taking people by surprise. "tim geithner had been the bail out irin chief during the trait crisis. as president of the new york fed, tim had been responsible for regulating many of the very institutions whose activities had gotten us all into trouble." a lot more with that and the feud with secretary geithner when shelia steps to the set right here on "power lunch" on cnbc. how do you know which ones to follow? the equity summary score consolidates the ratings

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it's going to be a real bad week for traffic here in manhattan because of the u.n. general asell blind a lot of new yorkers hate it. that might have been why one of the reasons why these two businessmen got into a first fight over a can, all, as you said, caught on tape. making the rounds on the internet. we don't know where they were or where they were going but they were in a rush and arguably, should move to jersey. >> i would think so. one word, subway. when that kind of stuff happens in new york city you take the subway. all right, thank you, simon. former fdic shelia bair's new book offers some striking, very candid commentary about the people running the nation's top banks during the financial crisis, plus some choice words about treasury secretary tim geithner. the book called "bull by the horns, fighting to save main

street from wall street and wall street from itself." chairman bair, thank you for joining us. congratulations on the book. >> thank you. >> pleasure to have you with us. i think choice words, to a certain extent is putting it rather kindly. you take on tim geithner throughout this entire book for his role, not only in the 2008 financial crisis when he was treasury secretary but before that, when he was at the new york fed. >> well, i do think there was a fundamental clash of philosophies throughout the crisis. i think he viewed the problem through the prism of the large financial institutions, particularly citigroup and his world view was if you help him out of his troubles, you will help the broader economy. i wanted to impose market accou accountability. i wanted investors to share more of the pain and take more of the risk. i think it was a constant conflict throughout. it spilled over when they were

doing today frank adodd frank ad how to fund the resolution mechanism, we wanted an assessment on large financial institutions, he thought that so yeah, just a fundamental philosophic disagreement through my tenure. >> we have a couple quotes we have taken sprinkled through the book, one many people have seen, tim geithner had been the bailouter in chief since the 2008 financial crisis, but your issues with him actually started with bear sterns, did it not? >> it did. we weren't involved with bear sterns. i viewed that reading the papers and glomming information together from some of my staff, bear stern he is a tiny bank. i think we had no involvement with what it whatsoever but as the chairman of the fdic, i was very surprise guide because we'd process in place for the government to get involved resolving insured banks. we didn't have a process for securities firms, supposed to be outside of the safety net,

supposed to go into bankruptcy and the assumption with the bear sterns assistant deal with jpmorgan chase, they were systemic and needed help. to this day i have never seen an analysis who were bear sterns' bond holders? >> you think they should have let them go down? >> i don't know. i think you should have a good, strong analysis before you start exposing taxpayer money, the fed's money you the government's money, to bailing out institutions that have been mismanaged. to this day i have not seen a good an nal so i was why bear sterns was systemic. >> all right. then fast forward a little bit and citigroup is in the crosshairs along with a lot of other financial institutions. one thing i have to say, i told you earlier when i read this books you took me right back to the financial crisis and i'm not sure that that was a good thing. but tim geithner seemed to view his job as protecting citigroup from me when he should have been worried about protect the taxpayers from citi. the the three from this whole

group is you think timothy geithner was not doing the job as it was laid out for him to do that he took sides. >> right. >> that he protected citigroup over other financial institutions? >> right. right. well, i do -- again, i think he always thought he was doing what was right, but at the end, he looked at citigroup and helping citigroup is hedge the broader -- like the old joke, you know what's good for gm is good for the usa, secretary of defense wilson in the '50s, getting himself in trouble there. what is good for citigroup is going to be good for the country and that's just not true. they are not the same. they are not the same as all. looking back, again, this is a retrospective, but i mean, even then, i was advocating much more forcefully for troubled asset release, get the bad assets off the bank balance sheets, restructure the loans, we never really ripped that band-aid off and tackled it and there's stale lot of bad loans and assets sitting there. weaker institutions, like citi,

you know, they don't do a lot to help economy, they sit there and nurse their balance sheet a couple years until they get back to health. >> you obviously, as you read the book, have issues with a number of the bailout procedures that went through. yet at the same time, you went along with some of them. how do you justify? >> i got both ways. i was repeatedly criticized not bag team player, not pushing back. you know, we were one government. we were dealing with a very dire situation. we do need to act. i don't question we need to act. we absolutely needed to act, just the wisdom of the actions we took i think bears some scrutiny and some self-analysis. but yes, we dialed back a lot. i mean, our debt guarantee program, i was originally asked to just make a public statement that the fdic was going to be guaranteeing all financial institution liabilities and that would have been a really huge risk exposure for us, one we were not equipped to do and one i was not willing to take. it was not necessary. we dialled that back. >> when you heard that mr. geithner was made treasury secretary, you said it was like

a punch in the gut? >> yeah. >> as we move through the financial crisis, it became clear that house was going to be the major issue once the systemic risk had been taken out for financial institutions yet you say, "i don't think helping homeowners was ever a priority for tim geithner and/or larry summers." >> i think they thought it was messy. it was hard. >> what was their priority then? >> the big banks. they wanted to -- a lot of what was going on oh i thought, you know expresident obama and mr. mccain had both been out there advocating for very aggressive foreclosure prevention relief. so i thought we would at least get a change with that citi came up with a very tepid program, one we told them administratively was not workable. i think what was going on was they -- to get the second tranche of the t.a.r.p. funds, t.a.r.p. was $700 billion it came in two installments to get that second installment, the democratic leadership told them they had a foreclosure prevention program.

i think that was their main priority tour get that second tranche, which they wanted to use for what i call the $100 billion club n 2009, we basically said we were going to bail out anybody over $100 billion. >> do you think you were listened to in this process? because, you know, you quote mr. rice the otc, office of thrift supervision chief, john rice, saying that basically, the audacity of your putting forward some of the proposals that you had, you do think that and frequently you were the only woman in the room, do you think that that worked against you, was it held against you? excluded from discussions because of it? >> i don't know exa lot of people ask me that question and young women ask me that question, feeling excluded or left out or not listened to, may be gender or not. you can drive yourself crazy trying to figure it out. there, were i think, people that had some lack of respect for the fdic, too reviewed us as the regulator for those little people that had less than $100,000 in the bank. i think there was maybe some arrogance toward the agency,

too. so, i don't know why, but i do know that our voice wasn't heard as much as it should. i was not included in as many meetingsize should have been, not advance warning i should have been. >> one points, you were getting most of your information from cnbc. >> yes. >> that treasury and fed were not talking to you. >> they were not talking to us, like we were pummed in the last minute when they felt like they needed us. i think some of that was calculated, they wanted to jam us if they brought us in early in the process with we have more ability to guide the decisionmaking f they call meat 10:00 on a friday night as they did he with the second citigroup bailout, they said it was going down this week and you got to do something. my options were limited. >> there is a thread at not only frustration but anger toward treasury secretary geithner. have you talked to him since you finished boot something have you got an response? >> i just -- no i have not. i don't think tim is going to be surprised by any of this.

i think throughout this, tim thought he did what was right. we had a profoundly different philosophical disagreement. the whole way things were handled, yes, still makes me angry. we didn't help home owners, didn't tackle mortgages wait we should have didn't clean up the bank balance sheets, continues to be a drag on the economy and the horrible public cynicism and anger towards washington and toward large financial institutions and this perception the game is rigged, you know, the washington -- everybody in washington is captive, that was all created by the bailouts and yes, it does still make me angry. >> good luck with the book. >> thank you. >> pleasure tough with us. former fdic chairman shelia bair, her new book is called "bull by the horns." thank you for joining us. we should note that "power lunch" reached out to the treasury department and mr. geithner's office specifically them declined to comment. simon? >> now, that, sue herera is an

interview. wow. thank you very much. sue there with shelia. coming up on the program, the new ceo atia hoo is showing her plans to the troops today. will it be simply a reed or earthquake of the deck chair or something substanning? republican presidential nominee mitt romney at the global clinton initiative today. >> thank you, mr. president. it's an honor to be here this morning and i appreciate your kind words and that introduction is very touching. if there's one thing we've learned in this election season, by the way, it is that a few words from bill clinton can do a man a lot of good. all i got do is wait a couple of days for that bounce to happen. so -- smart comes with 8 airbag, a crash management system and the world's only tridion safety cell which can withstand over three and a half tons. small in size. big on safety.

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[ male announcer ] the exceedingly nimble, ridiculously agile, tight turning, fun to drive 2013 smart. ♪ gold prices about to close. sharon epperson has the latest from the nymex. >> wither looking at gold prices here up only 2 bucks or so, closing around 1766 an ounce and we are seeing softness, kind of across the board in some risk assets a lot of traders are watching what's happening, a lot of the headlines coming out of the u.n. also, of course, watching headlines from philly fed bank president charles placer and his comments about short-term interest rates and the fact they may not stay low all the way to the middle of 2015, but here on the floor, a lot of the traders are saying part of the reason why we are seeing bit of a reversal here and the gold price from the highs right here in the

session is the fact that today is options expiration in the gold pays the and could have lent to some folks trying to protect the upside positions that they have here and perhaps we are seeing a little bit of a pull back and some profit taking as a result. in terms of the copper market, copper had been one of the best performing commodities here so far today. we have seen copper up a little bit on some reports about chinese demand and we are seeing a little bit of steadying in the palladium market. you recall in the previous session, we saw a huge decline in palladium, a lot of folks attributing that to some of the etf action. today it is evening out a bit. simon, back to you. >> thank you very much. back here at the new york stock exchange, courtney reagan join us, a relatively tight range on equities today. >> it is simon, saw action take place this afternoon. sought equities slip. right now, just off session highs but went into negative territory from positive around 12:30, trace the movement that we saw in crude oil prices. if you look at the energy

sector, you can actually see that leg down, nearly matching the percentage-wise drop in wti crude oil right now. we began to recover just a little bit but not surprisingly, oil stocks among the worst performers at this point in the trading day. nei nay bores. the case-shiller home price index. look at these numbers, carnival, lowe's, home depot higher in that group. if the dow closes lower today, simon, i will note it could be for the third straight session, the fifth of eight sessions since qe 3's unveiling you. trade verse said that these rallies have faded faster and fast we are each of the stimulus bus that's really fast. simon? >> let's dive into that now. thank you very much for that. kenny polcari joins me from i

cap. you are taking your head there. >> if market closed down what are we talking about, down a quarter percent is not closing down s it negative? of course it is negative but wouldn't look for anyone to get nervous the market seems to be churning this 1450 level trying to build a base which i think will let in it move higher into the end of this month. >> why higher? >> because we are coming to quarter end, i think a lot of churning and shuffling as portfolio managers adjust, upward pressure to that next, nonfarm pay rolls, next friday, thank you a lot of anticipation into that. then, you know, the presidential election next week, certainly got the u.n. this week. the common side of placer, bernanke saying rates throw 2015. placer saying not sure. half the fed came out said they were against qe 3. why can't people say hang on a minute, particularly that, let's

book profits, sell now and the market goes low? why do you insist the market goes higher? >> i just think it is building a base here at 11415 and move higher. i don't think we are going to 1550 by any stretch but i think from here, we are going to have this 25-point move in the s & p to 4 1 475ish and the mark let back off again p >> i have got t thank you very much. sue? >> all right, kenny. note, i'm going to be back down there with you on thursday. work up something good for different. >> try the pasta fajgoli. >> see you thursday. american voters don't seem to be buy nothing romney no, ma'amics why? we will have answers for you when power lunch returns in two. . great! it's always good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great. didn't realize they did photoshop here. hey, good call on those mugs. can't let 'em see what you're drinking. you know, i'm glad we're both running a nice, clean race. no need to get nasty.

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we have got yahoo! off half a percent ahead of that beginning of that meeting with marissa meyer there amazon providing some strength earlier today, off its highs, amazon providing the cloud services for the nasdaq's new cloud service. today, it has been in terms of market cap weight and impact, a tug-of-war between google and apple. google powering forwards to new fresh all-time highs, eric

schmitt saying, hey, we are not in such a hurry to develop an app for the new iphone. people don't like that apple map, they should have kept ours. apple meantime lower, look at what is happening in september. google has come on. google one of the double-digit gainers, all-time highs some, of the others that have been double-digit gain percent today putting in fresh highs today, the biotext on fire. gilead, the best performer in the nasdaq 100 up 17% so far this month. comcast, parent company of nbc universal putting in a fresh all-time high today. sue and simon? >> thank you, bertha a lo lot of hedge funds seen a rebound the last few weeks but lagging equity markets for the year overall. joining us with his monthly update on asset allocation is david palin at city private bank. how are you? >> >> how are you? >> i am kearn sod many hedge funds appear to be underperforming, i wonder where this leads you and the advice you are giving high worth

individuals? >> in regards to markets that have underperformed, broader stock indices across the globe, individual sectors, relative value, you will see this there have been sizable gains for the year. >> many people who saw 2008 believe everything is correlated virtually. >> you luke that the year as an example, there is an absence of correlation among the different strategies, event-driven strategies, macrostrategies, cta strategy, all those now are performing particularly well. at times went equity markets are zigging and zagging. we think there is real diversification here and this is not 2008 by any means. >> i'm imagining mortgage-backed securities has been a winner? >> it has all the different risk-on fixed income traced done

extremely well. yields have fallen, spreads have compressed, terrific positions and the private bank, for example, overweight those holdings much of the last year and a half. the hedge funds have done as well. we think that trend is near an end however, simon. >> talk to me about the future what do you believe will happen if that trend is at an end why do you believe it is, and where next could people profit? >> well, right now, what i would say is there's sort of aby if you are cation and when the common trend is to have risk on as it seems to be equities now, you have to be wary, mark vets a great run. the area wes like are those distressed, distressed real estate, distressed assets in europe, we think you can play those through hedge funds, in addition, we think there are opportunities and individual securities going to benefit. those can be all across europe, you can buy a typical stock at a pe of let's say 10 as compared to a pe of 20 on a forward-looking basis in the u.s. and you get the same multinational exposure. overweight certain markets and underweight others. >> i didn't mean interrupt you. any other individual stocks here you want to mention that stand

out from the hedge fund universe? >> one of them we mentioned, google last time we were on, this time, cvs caremark, a good performer, benefiting from the fight between wallgreens and express scripts and blockbuster generic trucks coming on now, we think that stock will do well and many of the hedge funds are holding that. >> further gains from here? >> yes. i think that you want to keep your exposure to head funds consistent. average 1 s in the typical wealthy client's port foal yoerks makes sense, prosides are diversification there is risk on, a good time to have risk on, we thank you good time to be wary and stay diversified. >> okay. david you can it's good to see you. >> thanks, simon, appreciate the invite. >> david bailin from citigroup. back to you. yahoo! stock taking a wild ride this year. the tech company's new ceo, marissa mayor, outlining her vision for yahoo! in a meeting right now. we will head to the sunnyvale head quarters after a quick break. the stock is down half a the stock is down half a percent. alf tons.

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welcome back to "power lunch." watching shares of deckers outdoor hitting a 2 1/2-year low in today's trade on further concern he is around weak ugg sales, today, cut the price target from 38 to $32 a share. keep in mind, there are large stores in this name, any good news could warrant a short squeeze. today, shares down 7%. back to you. >> thank you, seem ma. all right, welcome back to "power lunch." now to today's yahoo! finance poll. as we told you you can the average s.a.t. scores have hit a modern day low, so who this to blame? 34% of you say poor teaching. 7% say not enough funding. 27% say american pop culture. that's kind of a broad brush. 32% say too many tech distractions. i might go for that one. see what's coming up on street signs. mandy? >> definitely say too many tech distractions. anyway, at the top of the hour, guys, got some really surprise and also seemingly conflicting results from the all-american

economic survey.ve jus addicted to hope? and do we really need china? do we really need them? by we, i mean u.s. people, american corporation. we will debate that on the back of our discussion yesterday about the road bumps for electric cars, tesla motors putting out a warning. going to talk about that with phil lebeau. lots of things at the top of the show. sue, simon, back to you. >> do let us know what you decide to do with china ultimately, amanda. >> absolutely. we will. got to tune in to find out, simon. there's the tease. >> i will. i will. this is the first day of the rest of yahoo!'s life you the new ceo marissa mayer is talking to the rank and file at the company's head quarters about her vision for the team. she started the conversation july 17th. since then, the stock is up and down. standing in the $16 a share range today. 15.86, give or take. jon fortt is live at yahoo! headquarters with the latest.

hi, john. >> hey, simon. the best i can tell, thins meeting got started about the top of the hour and seems to still be going on, haven't seen a lot of people coming out just yet. as you can see, the stock trading down slightly today, less than a percent. mayer is address the company about the strategy going forward. and some of what we expect is changes to the homepage, which is the most important page in yahoo!'s arsenal, expectations she is going to scale down a bit pill, put the emphasis on social, apps, make it an active place, hopeful lay place people come back to and spend more time on pause engagement has gone down and in the advertising game, engagement has a lot to do with ongoing revenue. look at com scores numbers, they have yahoo! search share at 12.8%, down quite a bit from where it was. a third of yahoo!'s revenues. important to begin the again, difficult for yahoo! because of the search partnership, microsoft, basically outsourced the back end, very expensive is to maintain back end to

microsoft. but that has not yielded good advertising results at this point, mayer expected to lay out a plan for how yahoo! can use their tools for the part that they do have control oevgs the front end, the user experience to hopefully get a search share back up. also worth noting, $7.1 billion in proceeds from the sale of a partial stake -- part of the stake in ali baba. we might hear a little bit about how yahoo plans to distribute much of that to shareholders. we know that that is the plan. and rile now it is interesting, we have, across town in san jose, research in motion meeting talking about blackberry 10. yahoo! faces a very similar challenge now on the web to what r.i.m. faces in smartphones. how are they going to take their old mold and move it into the new mobile and social age? see if mayer has answers. try to get employees to give must the scoop on what happened in here when this is over. >> what do you think the timing

is likely to be? >> when this ends? >> when we think we will know what she says? >> well, not just a matter when it ends. yahoo! is trying to keep the lid very much on leak he is. so it is tough to figure out who's going to speak up and give us the low down on what's happening there we will do our best. >> john, thank you very much r the view there from yahoo! in california. we will let you get deet tapes as they emerge. listen up, football fans, were you watching the seahawks/packers game last night? perhaps clutching your face in shock? this call, the replacement ref rage continues. but all right crowds still pack into the stadiums? really? is the nfl totally bulletproof? "power lunch" is back after the break.

joining us, jane wells and john harwood, for the power run down. >> great to be here. >> start out with mitt romney lacking president obama in all the major polls, but as a businessman, why aren't american voters buy nothing romney no, ma'amics? john, why do you think perhaps some of them are not anyway?

>> i think there are three things. one, there are some economic indicators producing greater confidence, like the stock market. secondly, conservatives will tell that you mitt romney has not been aggressive enough about laying out his own economic program. and finally, bill clinton helped barack obama to have a very successful democratic convention that has improved some of the numbers and assessments for the president. >> i just think it's stunning. i mean, here, the guy who is overseeing this floundering economy is doing better in this poll than the guy whose whole campaign is based on turning the economy around or ability to turn it around. like watching golden tate catch a touchdown. it doesn't make sense to me. maybe people don't want to change horses midrecovery or 47% of the people really are ticked off. >> no replay in presidential election. >> that is true you no instant replay. something capturing a lot of parents attention, moi, s.a.t. reading scores hitting a 40-year low among high school seniors this year. what's the reason? our yahoo! poll, jane said, a lot of people are blaming

teaching or tech disruptions? my kids are still little but your son -- >> i have a 20-year-old in college and a 22-year-old. i have lived through this and short of harry porter around captain underpants, they didn't read. they played video games. they have got this texting shorthand, spell check correctless everything for you now. >> right. >> they are just not reading as much. i don't know long-term if that is a bad thing if we are going to evolve as a culture into more of a tech shorthand kind of culture. >> all reading on the ipad these days, john. >> i'm blaming a lot of it right here. >> you think the tech disruptions? >> absolutely, i do and i think the auto correct is a horrible thing, people are not learning,spell either. some of it may have to do with the teaching and the quality of school bus i would put more of it on parents and what they do or don't do in terms of encouraging their kids. >> yes, i was a bad mother. >> you were not a bad mother. >> i was a bad mother. >> giving you a pass. >> thank you. 30 minutes of night reading at our house for three kids. i'm in the media business.

you got to read. all right. finally, if you were watching last night's packers -- why do they keep bringing this up? it is just a pain in my heart, i'm a packers fan. packers versus seahawks, you probably saw the nfl fans who were outraged by the refs, receipt placement refs, but what would it stop you from watching or attending games? is the nfl bulletproof? it might be. i'm getting very frustrated with this, john. i don't know if i can trust the score. it's not reflective of what's really happening in the game. >> i don't think the nfl is bulletproof, especially in the age of parity. we go on long we are replacement revgs people will see game outcomes as essentially random and unduly influenced by the referees. i think this puts tremendous pressure on the nfl to get this right. they put out a statement, you may have seen, saying the call was correct on the touchdown but they acknowledged that they missed the offensive interferen interference, would have ended the game for the packers. >> is making me out of my mind. >> for me, now it is the reason to watch. i want to see how crazy it is going to get.

>> leave it to you to take the perverse side of t. >> the only thing that might change people who lost reportedly $150 million on bets in las vegas, some sort of class action lawsuit against the nfl because people losing legal bets, money talks. >> i just think it's ruining the statics, can't trust the statistics, going to influence who ends up in the playoffs. it gives me angina. it really does. >> read a book. >> exactly. i will read a book. thanks. good to have you here. simon, down to you. are you a football fan, american football? >> well, not as much as other sports. don't you just wish those two were here all the time? >> i do. i do might have to kidnap them and bring them up here. >> simon likes the kind of football where they don't ever score. >> oh. >> oh. >> okay. >> shot from the johnster. >> in the next hour of the program, a look at the five worst stocks -- back to something more mundane, five worst stocks in the s & p 500 this year. are they diamonds in the rough? power lunch will be right back. [ male announcer ] when this hotel added aflac

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program it was a market basing. let's bring in matt chess love from virtue. what do you make of what you are seeing here? >> one thing i'm looking for is transports. obviously, this add good day yesterday. they were one of the outstanding leaders. today, a good reversal f they can hold in this range of 4900 here, maybe we can build a base and get confirmation that the dow may be going a little bit higher. >> there's been a lot of chatter transports haven't been holding up the way the bulls hoped. then a piece was put out, if you look over history, you don't need the transport all the time to confirm it? >> you don't. in a market with no new knew need technicals to take you higher. transports may be one of the sectors, get confirmation the dow would take us to the next level, 194.1 on the dow >> what is the next event for you? >> probably -- i will look at the presidential debate. next wednesday? a week from wednesday? we should mention, sue -- thank you for that matt. mention that spain has a big